Samsung-Apple 'Tag War'... Expanding the Connected Ecosystem

If you attach the location tracking accessory 'Galaxy SmartTag' to keys that are easy to lose, you can easily check their location with your smartphone.

[Asia Economy Reporter Seulgina Jo] Samsung Electronics and Apple, who are fiercely competing over the smartphone ecosystem, are now clashing in the ‘Tag’ market. Earlier this year, Samsung Electronics opened the market by launching the ‘Galaxy Smart Tag,’ and Apple is also expected to soon release the much-rumored AirTag. The ecosystem competition between the two companies, expanding and connecting through wireless earphones, smartwatches, tablet PCs, and tags centered on smartphones, is expected to heat up further.

◇Will AirTag make its debut next week?

Apple will hold a new product launch event at 2 a.m. on the 21st (10 a.m. on the 20th local time) at Apple Park in Cupertino, California. The event, which will be broadcast live online worldwide, is expected to feature the debut of the AirTag alongside the new iPad Pro.

Like the Galaxy Smart Tag released earlier this year, the AirTag is a wireless tracking accessory that can be attached to easily lost valuables such as wallets and keys, allowing users to locate the current position of items via iPhone or iPad. It can also be used as an auxiliary device for infants and pets. Some speculate that Apple may introduce a mini application integrated into the iPhone as an app form rather than releasing the AirTag as an independent product at this event.

Expected image of Apple AirTag [Source: IT tipster Jon Prosser]

Originally, the AirTag was expected to be released alongside the iPhone 12 series last year but was ultimately not unveiled. IT tipster Jon Prosser recently revealed an anticipated image of the AirTag, a round shape with the Apple logo on the front, stating it would be "slightly larger than a bottle cap." Another tipster disclosed that the AirTag’s diameter would be 3 cm and priced around $39, which is more expensive than Samsung Electronics’ competing Smart Tag.

The AirTag is reported to use Ultra-Wideband (UWB) wireless communication technology. It is expected to provide users with more precise location information measured in centimeters, surpassing Wi-Fi and Bluetooth in accuracy.

Samsung Electronics, which opened the tag market ahead of Apple, will also release additional UWB-based products. From this day, the upgraded version ‘Galaxy SmartTag+’ will be available. It features simultaneous support for UWB along with the existing low-power Bluetooth-based product. Augmented Reality (AR) systems have also been added. The domestic launch price is 39,600 KRW.

Samsung Electronics announced on the 16th that it will release the upgraded version, Galaxy SmartTag+, in South Korea. The colors are Black and Denim Blue.

◇Strengthening Apple ecosystem... head-to-head with Galaxy

The launch of the much-rumored AirTag signifies Apple’s effort to further solidify and expand the ‘Apple ecosystem,’ which connects iPhone, iPad, AirPods, Apple Watch, and more. This move is also interpreted as a strategic targeting of the rapidly growing wearable accessory market, unlike the saturated smartphone market. According to market research firm Gartner, the global wearable device market is expected to grow to $109.2 billion by 2024.

A head-to-head competition with Samsung Electronics is inevitable. In recent years, Samsung has been focusing on expanding the ‘Galaxy ecosystem,’ which connects Galaxy smartphones with Tabs, Buds, Watches, and more. Internally, Samsung recognizes criticism that its ecosystem strategy lags behind competitors and is accelerating open collaboration based on an open ecosystem and strategic partnerships.

Chinese companies like Xiaomi are also entering the location tracking accessory market linked with smartphones one after another. Xiaomi, emphasizing cost-effectiveness, has released ‘Petbit,’ a dedicated Mi Band for pets that allows users to check their pets’ location via smartphone. Additionally, Xiaomi is expanding its market share in the wearable accessory market by implementing a ‘Smartphone × AIoT’ strategy centered on IoT and lifestyle product lines. Huawei, which drastically reduced its smartphone business due to U.S. sanctions, has also officially shifted its focus to the AIoT market.